Product Returns: An Opportunity to Shift towards an Access-Based Economy?

Denise Baden and Regina Frei
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Denise Baden: Southampton Business School, University of Southampton, Southampton SO17 1BJ, UK
Regina Frei: Southampton Business School, University of Southampton, Southampton SO17 1BJ, UK

Sustainability, 2021, vol. 14, issue 1, 1-13

Abstract: With the rise in online purchases, returns polices have become more lenient to maximise sales, leading to increased product returns. This results in considerable costs to businesses due to complex returns systems, and environmental costs due to unnecessary transportation and waste. Unsustainable consumption poses a threat to our environment, and access-based business models whereby products are borrowed/rented rather than purchased have been proposed as a way to align customer needs, business success, and sustainability. Product returns often constitute a form of informal or illegitimate borrowing, as goods are bought with the intention of being returned. In this discussion paper we propose that, instead of being viewed as a threat to business, issues with high product returns could be seen as an opportunity to switch to an access-based model. As product returns escalate, businesses will need to invest substantially in their reverse supply chains. We propose that a more strategic approach might be to leapfrog the costly stage of developing more efficient returns systems, and move straight to formalising product returns as the new normal for those goods that would best suit an access-based model, so that processes are streamlined around borrowing and returning rather than around sales.

Keywords: access-based economy; circular economy; product returns; reverse logistics; sharing economy; sustainable consumption (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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